Nawroz Restaurant, in Potterrow, fought off stiff competition from hundreds of eateries around the country to claim the title, for which seven other restaurants in Edinburgh were also in the running.
The Southside restaurant is popular with families, students and couples. Its bosses received the award at London’s Park Plaza Westminster Bridge Hotel.
Staff from the restaurant mingled with special guests including Mr Corbyn, London mayoral hopeful Sadiq Khan and MP Liz McInnes.
Giulia Maccagni, a student who lives in Edinburgh, said she visited the restaurant regularly and praised it for offering an authentic experience.
She said: “I love the Nawroz Restaurant, it gives people in Edinburgh a real taste of the food you’d be likely to find in the Middle East.
“The food is really nice so I’m not surprised they’ve won.
“The last time I was there I had shish taouk and it was delicious, I will definitely be going back.”
More than 1.3 million kebabs are sold in Britain every day, with competition for business in the Capital heating up all the time.
Last year, Javits Takeaway on Granton Road won the Scottish title after impressing the judges with its traditional donner kebab. Javits was shortlisted again this year, alongside Samsun’s Speciality Kebab and Pizza House in Ferry Road, Hanam’s Restaurant in Johnston Terrace, Pera Turkish Restaurant in Elm Row, Hanedan Turkish Restaurant in Preston Street, Verdo Turkish BBQ in Newington Road, Yeni Restaurant in Hanover Street, and eventual winner Nawroz Restaurant.
Councillor Cameron Rose, a regular diner at the triumphant restaurant, said Nawroz was a worthy winner.
He said: “I am delighted to hear that Nawroz Restaurant has won this award.
“With such a wide variety of restaurants in the city, there is definitely a lot of competition.
“It’s very well known in the Southside for its distinct characteristics.
“The traditional Shisha pipes are just one thing that makes it unique.”
The awards were judged and presented by a number of MPs, including Nadhim Zahawi and Keith Vaz.
When Mr Corbyn stood up to present the award for Outstanding Contribution to the Kebab Industry, he took the opportunity to urge people to eat more salad with their kebabs – as part of a balanced diet.
Ibrahim Dogus, founder of the British Kebab Awards, said: “I congratulate them heartily.
“They are worthy winners and with their help the once-humble kebab will surely soon earn the highest accolade of them all. I think it is only a matter of time before it is recognised that kebabs have overtaken curry as Britain’s national dish.”